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To
OTC Journal Members:
Here's the definition of a good penny
stock trade. Find a microcap company that has been quiet of late. Take
a look at the company's products and potential. Look for catalytic events
that could get the stock moving up the charts. If you like the story, accumulate
the stock at the low end of its trading range. Determine your stop loss,
and wait for developments to get the stock moving.
Accumulate the stock while it remains
low. Sell when the stock surges on huge volume at a nice profit. If it
hits your stop loss first, sell it.
Sound familiar? That's pretty much
the exact formula that yielded an outstanding 200% to 300% return
on Nighthawk for those who acted when I made the call at $.03
to $.04, and then again last week at $.055. A minimum of
a double if you sold this week in a few short months.
Here's the next potential Nighthawk
while it's still at the low end of its trading range:
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eFood Safety
(OTC BB: EFSF): Low End of Range, But Not For Long |
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Have you ever heard the phrase "The
Awesome Burden of Permanent Potential". That phrase describes
eFoodSafety
(OTC BB: EFSF). Permanent potential is going to convert to tangible
results throughout the course of 2007.
EFSF has traded to much higher
levels in the past as investors anticipated product developments would
lead to commercial success. In March of last year the stock traded up as
high as $.60- more than three times the current level. I believe
it's going back there, and this time as a result of strong sales of products
which are hitting the store shelves and commercial airwaves today.
EFSF describes itself as "dedicated
to improving health conditions around the world through its innovative
technologies". This company has been developing some very exciting items
over the last several years, and is positioned to see sales skyrocket in
2007 with commercial introductions.
If they hit on just one of the three
products I am going to show you today, sales could jump from about $1 million
annually to $30 to $50 million plus annually. If so, we are looking
at a potential 5 to 10 bagger from current levels: a $1 stock plus.
Here's a quick review of their breakthrough
products for 2007:
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Cinnergen:
The Carb Buster |
 |
The product you see here is currently
on the shelves in about 6,000 retail outlets throughout the
US including Kroger's, King Soopers, GNC, Vitamin World, and many others.
By the end of March, that number should go up to 10,600 retail outlets-
including some much larger household names. You can also see this product
advertised in short commercials on CNN, The Price Is Right (syndicated),
and a few other national TV venues.
It retails for about $30 for a 32
oz bottle, and $15 for a 16 oz bottle.
You simply drink a 1 oz cap full
every morning when you wake up, and the product helps you body metabolize
sugars and carbohydrates. In short, it helps convert sugar into energy
instead of fat. It helps you lose weight.
A clinical study will be published
before the end of January confirming it works. The ingredients, which include
cinnamon extract and blueberry leaf extract, have been proven independently
to help your body metabolize sugar. EFSF is the first to combine
them into one, easy to take formula.
There are numerous testimonials from
diabetics on their web site confirming the product does indeed help control
blood sugar levels. If you want to read the testimonials, here's a short
cut: Click Here.
Here are the numbers: if every retail
outlet averages four sales per month of the 32 oz bottle, it equates to
about $700k per month in revenues, or $8.4 million in annual sales.
This about 8x last year's revenue figures, and just the beginning. There
are some retailers looking to add the product once the study is published
who would sell in substantially larger quantities relative to their size.
Look for additional, high profile
retail names to start carrying Cinnergen. There could be catalytic
announcements which would send the stock surging. Numbers and advertising
are going to increase from here.
|
Product
#2: PurEffect- Taking on ProActive |
|
Have you ever heard of ProActiv?
For about 8 years I saw a monthly charge on my credit card bill for $30
to pay for my teenager daughter's monthly shipment.
ProActiv is endorsed by celebrities
like Jessica Simpson, Vanessa Williams, Lindsey Lohan, Kelly Clarkson,
and my personal favorite, Alicia Keys. The company sells $650 million
worth of product every year, and is widely considered the 1200 lb gorilla
in products used to treat acne, a teenagers' worst nightmare.
Enter PurEffect. EFSF
has developed a product it believes is better than ProActiv, and
it will be hitting the market via infomercial and celebrity endorsement.
Here's the best part of the arrangement
for EFSF shareholders. The entire infomercial campaign will be organized,
managed, produced, and funded by CK41
Direct- a private company in the infomercial marketing business.
CK41
will cover all expenses and split the profits 50/50 with EFSF.
CK41 Direct is run by a bunch
of ex Gunthy-Renker folks who's resumes include "Ab Away Pro," "Body by
Jake" fitness products, and "Rapid White" tooth whitening system. Other
successes include the "Ab Sculptor" with more than $100 million in sales
and the "Ab Doer" with sales in excess of $350 million.
Here's a quote: "CK41 anticipates
estimated revenue at more than $100 million in gross sales in the first
full year of the infomercial's national roll-out in the U.S. market alone,"
stated
Christine McDonald, president and CEO of CK41 Direct.
The infomercial is in production
right now, and expected to start airing before the end of Q1 '07. There
will be celebrity endorsements, and in a few weeks the names will be disclosed.
|
OraPhyte:
Attacking the $100 Billion Nematode Problem |
|
Pictured here are some slimy, microscopic
critters known as NEMATODES. This little guys are responsible for
about $100 billion in crop damage worldwide every year. There
are over 20,000 different species of these things, and 15,000 of them are
parasitic.
Also known as and confused with Round
Worms, nematodes get into and eat plant roots. They do $10 billion
in crop damage every year in the US alone, and there is little or nothing
the agricultural industry can do about them in an environmentally safe
manner.
EFSF has developed a product
known as OraPhyte which kills and controls plant-parasitic nematodes.
Once available, OraPhyte will be about the only product available
that can deal with the crop damage.
So, where are we in terms of a commercial
roll out of OraPhyte? Today, just after the close, we learned that
OraPhyte
has been in testing with the US Department of Agriculture since June of
2005. The USDA is expected to release its findings in the next 60
days, and enter into a licensing agreement with EFSF which will
include an endorsement of the efficacy and safety of the product.
Currently, nematodes are fought
using methyl-bromide, a substance found to be toxic and environmentally
unsafe. The Montreal Protocol, an international treaty designed to identify
and disrupt the use of ozone depleting substances, has placed methyl-bromide
on its "phase out" list, meaning stop using it!
The Bush administration, which refuses
to accept Global Warming as a reality, has allowed its continued use. Methyl-Bromide
is likely to be taken out of circulation in the US soon, and other countries
internationally are screaming for an environmentally safe product now.
|
Conclusion:
Almost No Down Side and Big Upside |
|
When I first stared looking at EFSF
I felt it had the characteristics required for a profitable microcap trade.
Here are some pending events that could send this stock rocketing up the
charts:
-
The clinical study on Cinnergen will
be published. It will lead to much greater sales and an expanded network
of retail outlets, including some major household names.
-
PurEffect will be endorsed by
teen idol celebrities. Those celebrities will be disclosed to the public,
and a launch schedule for the infomercial will be disclosed as well.
-
The USDA will publish its findings
on OraPhyte, finalize its licensing agreement with EFSF,
and marketing of the product will begin with the best endorsement available
on the planet.
-
As if that weren't enough possibilities,
EFSF
has several other products nearing commercial availability. A natural cholesterol
fighting product will be introduced on the heels of Cinnergen, and
they have developed a special scar cream they are currently distributing
to several hundred doctors around the US right now.
As you can see from the chart, EFSF
is simply cheap on a historical basis. It is within a few cents of its
all time multi year low, and probably ready for a major bounce.
There were 182 million shares I&O
until this past December when 30 million shares were retired. The past
Chairman and CEO had been embroiled in a law suit for mismanagement and
malfeasance. EFSF has a $9.2 million judgment against him, and was
able to retire his shares. There are now 152 million I&O, and the end
of the legal turmoil was huge for the future of the company.
So, in the $.20 range, you
have a market cap of around $30 million, with product introductions
over the next several months that could take the company into the $50
to $100 million in sales range.
It's simply a great penny stock speculation.
You have Cinnergen which is on store shelves now and starting to
take off. They are currently selling about $150k per month of product.
You have many more stores lining up to start carrying the product. Cholesterol
fighting product is close behind.
Here are my initial thoughts, subject
to change as this idea matures. The stock should have made its all time
low in December when it hit the $.155 mark. Therefore, your SSL on
this idea is $.15. If it makes another new low just get out if
you are a trader an interested in preservation of capital.
I believe you can accumulate this
stock right now up to $.22. A move above $.19 would break
the current downtrend line, bring $.22 into the picture, and higher
levels beyond. North of $.23, $.30 becomes the next leg up. This stock
averages over 300,000 shares in daily volume, so it is not under followed.
The high average daily volume level tells me there is an audience ready
bounce at the first sign of progress. Get in while it's still near the
bottom of its trading range and the risk is still low.
Position yourself now to take advantage
of the low trading range. Look for a BLOG shortly after the open
if there is a big gap on today's news concerning the USDA. This
one is a deja vu NIHK.
Here is the complete text of today's
news release for your review:
| Press Release Source:
eFoodSafety.com, Inc.
eFoodSafety.com, Inc.
Subsidiary Knock-Out Technologies, Ltd. Developing Joint Licensing Agreement
with United States Department of Agriculture (USDA) for Patent-Pending
OraPhyte Product
Wednesday January 10,
4:15 pm ET
OraPhyte is Designed to Combat Plant-Parasitic
Nematodes That Cause an Annual Estimated Crop Loss of $100 Billion Globally
SCOTTSDALE, Ariz.--(BUSINESS
WIRE)--eFoodSafety.com, Inc. (OTCBB:EFSF - News), a Company dedicated to
improving health conditions around the world through innovative products
and technologies, today announced that its wholly-owned subsidiary, Knock-Out
Technologies, Ltd. and the United States Department of Agriculture (USDA)
are working on a licensing agreement on the company's patent-pending parasitic
product, OraPhyte, a product derived from the Company's patented Citroxin
product that kills and controls plant-parasitic Nematodes. The agreement
will be based on a new use for OraPhyte specifically developed for the
control of plant Nematodes.
The USDA provides leadership
on food, agriculture, natural resources, rural development and related
issues based on sound public policy, the best available science, and efficient
management. The key to the testing by the USDA, which commenced in June
2005, is that the OraPhyte product has been found to be an effective alternative
to the existing method used, methyl-bromide, which has been found to present
various toxic environmental issues.
The significance of this
licensing agreement, expected to be completed within the next 60-120 days,
is that Knock-Out Technologies will be able to release all of the USDA's
research data as well as being able to leverage its endorsement in marketing
the product.
Plant-parasitic Nematodes
are microscopic worms that cause an estimated crop loss of $100 billion
globally. In the U.S., farmers face over $10 billion in annual losses due
to Nematodes, without an acceptable solution currently available. OraPhyte
has been designed to address this costly issue.
Robert Bowker, President
of Knock-Out Technologies, Ltd., stated, "Our environmentally-safe and
effective product, OraPhyte, is a novel and potentially groundbreaking
solution to this $100 billion problem. The fact that the USDA has tested
our product and is finalizing a licensing agreement with us speaks volumes
about the potential of OraPhyte as well as the possible financial impact
this product could have on the multi-billion dollar Nematode market."
Patricia Gruden, President
and CEO of eFoodSafety.com, Inc., added, "We fully intend to continue to
communicate with our shareholders and potential investors regarding the
finalization of the Licensing Agreement as well as other material developments
regarding OraPhyte."
About eFoodSafety.com,
Inc.
eFoodSafety.com, Inc.
is dedicated to improving health conditions around the world through its
innovative technologies. The company's Knock-Out Technologies, Ltd. subsidiary
has developed an environmentally safe sporicidal product formulated entirely
of food-grade components that eradicates anthrax and a germicidal product,
Citroxin (formerly named Big Six Plus) - EPA Reg. No. 82723-1 that kills
six major bacteria: E-coli, Listeria, Pseudomonas, Salmonella, Staphylococcus,
and Streptococcus, Avian Influenza, and Black Mold. The sporicidal product
has completed its final efficacy laboratory study requisite for EPA registration.
In the study, it eradicated both Clostridium Sporogenes and Bacillus Subtilis
with 100% efficacy on both hard and porous surfaces. The company's MedElite,
Inc. subsidiary distributes clinically proven products to physicians who
then prescribe the products for their patients. It recently became the
owner of the Talsyn(TM)-CI/bid Scar Cream, that has been clinically proven
to facilitate and improve the appearance, redness and strength of scars
(www.talsyn.com), as well as seven (7) other products in the Talsyn(TM)
line. The company is also owner of Cinnergen(TM), a non-prescription liquid
whole food nutritional supplement that promotes healthy glucose metabolism
(www.cinnergen.com), and Trimmendous(TM), a weight loss formula focusing
on the body's 24-hour metabolic processes. The company has entered into
a joint venture agreement with CK41 Direct, Inc. to launch the PurEffect(TM)
anti-acne skin care system.
Please visit the Company's
website at: http://www.efoodsafety.com.
Safe Harbor Forward-Looking
Statements
Statements contained
in this release that are not strictly historical are "forward-looking"
statements within the meaning of Section 27A of the Securities Act of 1933
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The forward-looking statements are made based on information available
as of the date hereof, and the Company assumes no obligation to update
such forward-looking statements. Editors and investors are cautioned that
such forward-looking statements involve risks and uncertainties and the
company's actual results may differ from these forward-looking statements.
Such risks and uncertainties include but are not limited to demand for
the Company's products and services, our ability to continue to develop
markets, general economic conditions, our ability to secure additional
financing for the Company and other factors that may be more fully described
in reports to shareholders and periodic filings with the Securities and
Exchange Commission.
Contact:
Redwood Consultants,
LLC
Jens Dalsgaard, 415-884-0348
Source: eFoodSafety.com,
Inc. |
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